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youm7 – Tax Facilitation Law: A Positive Steps
Engineer Mohamed Mendy, a board member of the Chamber of Woodworking Industry at the Federation of Egyptian Industries, stated that Law No. 5 of 2025 represents a positive step towards enhancing the Egyptian economy by offering tax facilities aimed at integrating the informal economy into the formal system. Mendy explained that the law allows unregistered taxpayers to voluntarily register within a specified period, exempting them from tax accounting for previous periods. This encourages small and emerging companies to join the formal economy without bearing financial burdens from past periods. He added that this step will contribute to expanding the tax base and increasing government revenues, while enhancing the business and investment environment in Egypt. The law also provides mechanisms for settling existing tax disputes, allowing taxpayers who underwent estimated assessments before January 1, 2020, to apply for dispute resolution by paying only 30% of the due tax, thereby boosting confidence between taxpayers and the tax authority. Mendy expressed optimism that these facilities will encourage tax compliance, especially as they support small and medium-sized enterprises that constitute a significant part of the national economy. He noted that the law represents a qualitative shift in economic reform policies and reflects the state’s efforts to achieve a more transparent and sustainable business environment.